It is a trust that collects money from a group of individuals with similar financial goals and invests it in stocks, bonds, money market instruments, and/or other securities. After deducting appropriate expenses and taxes, the income / profits generated by this collective investment are dispersed proportionately among the investors by determining a scheme’s “Net Asset Value” or NAV. Simply explained, a Mutual Fund is a collection of money contributed by a large number of people.
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